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strange XP Home issue - icons "stuck" on the desktop

VirtualLarry

No Lifer
My laptop, an HP ze2401xt, Sempron 3000+, 2GB RAM, ATI chipset w/onboard graphics, with an XP Home installation.

I cannot move my icons on my desktop. I click, I drag, and they stay put. Is there some mysterious setting to fix this issue?

It has been a problem ever since I got the laptop. I haven't wiped it yet, because I need to back up the drivers in order to re-install.
 
Do they work when you right-click or double/single click to open them? Maybe your desktop is an image (pic). 😛
 
No, it's definately a live desktop. I can install programs, add icons, etc., but I just cannot change their position. It's very strange to me.
 
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